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How Platforms Make Money ？

How Platforms Make Money ？. yuhai@2014.09. Four Theoretical Models. Ecosphere - Octopus model Business Needs - Pyramid model Marketing Path - Grid model Harmony of Users and Customers – Volleyball model. 2. The Main Business Pattern of Internet Platform - Connect.

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How Platforms Make Money ？

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  1. How Platforms Make Money？ yuhai@2014.09

  2. Four Theoretical Models • Ecosphere - Octopus model • Business Needs - Pyramid model • Marketing Path - Grid model • Harmony of Users and Customers – Volleyball model 2

  3. The Main Business Pattern of Internet Platform - Connect • Virtual service - connect user with user • Y2005 vs. Y2013: 0.18 vs. 9.9 (Billion $) • Advertiser - connect user with information • Y2005 vs. Y2013: 0.04 vs. 5.3 (Billion $) • E-commerce - connect user with product • Y2005 vs. Y2013: 0.09 vs. 7.9 (Billion $) 3

  4. The Characters of Platform Question： what is a platform？How to distinguish  between platform, product and tool? • Octopus, Ecosphere, not Ecological chain • User(who use your product), Customer(who pay you)、partner(who help each other) • the Matthew effect • Ride bicycle • The drinker's heart is not in the cup • Real-time, continuity • … ... 4

  5. The Search Ecosphere - traditional circle • website • advertiser 5

  6. The Search Ecosphere - new version with Octopus feature • website • import • Backflow New scenesusing search • advertiser Middle page Recommend search 6

  7. The General Business Model - Pyramid Consumption ability Demand Generation Media length ADS AGENCY DEAL 7 numbers Demand fulfillment Customer Needs Media Resource Business Model

  8. The General Business Model - Pyramid Consumption ability Demand Generation Media length ADS Soft ads Hard ads AGENCY Platform agency DEAL Merchant deal Information agency manufacturer deal 8 8 numbers Demand fulfillment Customer Needs Media Resource Business Model

  9. The Business Ecological Environment of Internet in China 产业链 Banner Video ads Newspaper ads TV ads TV shopping Social ads brand implantation Ad exchange Data exchange Display ads DoubleClick For Advertiser DSP Implantable ads Navigation & Display BaiduPhoenix Nest Google Adwords Taobaozhitongche Taobaoaffiliate Google Adsense Amazon affiliate Vancl Taobao big seller Exchange Brand zone Brand landmark Affiliate ads DMP Navigation ads Taobaomofang BaiduSinan Tmall ebay Wangwang Baidushangqiao Lixianbao Tongji JD Amazon HAO123 HAO360 meilishuo Amazon Baifendian B2X manufacturer Search ads Customer Needs Media Resource Business Model 9 Recommended ads Deal platform Value-added service B2X platform 客户需求 商业产品 媒体资源

  10. Four Dimensions affect revenue scale - case of ads

  11. Marketing Path – based on two marketing practice • The tipping point of Marketing • TV/Radio（short/expensive) • Video website • Newspaper/magazine • Outdoors/bus/metro Marketing Path • Evaluation of marketing effect • official website • online shops • offline stores • supermarket Branding is rigid demand Extending and linkage are potential demand

  12. Audience action 3R Marketing stage 4C Brand awareness Catch Brand Favorite Connect Purchase Close 3R4C Grid model Brand loyalty Continue

  13. The panorama of Media Platform - user-centered CPT sale of product/service CPA/CPS • fulfillment of user’s business decision Media Platform The third party-content owned-content charge charge free free Ads & import PV CPT/CPM/CPC attracting of user’s attention Customer (enterprise) User (netizen)

  14. The future of business product around marketing • Make user impressed • Make interested user learn more • Make user pay

  15. The volleyball theory- integration of business and user product • user customer A integrated solution for user and customer smash content（meet demand） CPA Second pass Indexing（relate demand） CPC  recommendation （inspire demand） CPM First pass

  16. Design Logic -case of search platform

  17. Thanks for your listening! • wechat/QQ: 7224236 • email: yuhai@baidu.com

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